The state income tax could drop by another half-percent.
The Kentucky House Appropriations and Revenue Committee started the process of reducing the state income tax from 4% to 3.5% yesterday by approving House Bill 1 in committee.
Representative Jason Petrie said legislators hope lowering the tax will grow the population of the state, and lower the number of residents who move away.
The bill will now go before the full House of Representatives for consideration.
If House Bill 1 goes into law, the tax reduction would go into effect Jan. 1, 2026.
